The recent minimum wage rises in Ireland did not result in low-paid workers losing their jobs, according to a recent study.<\/p>\n
The ESRI (Economic and Social Research Institute) study examined whether increases in the minimum wage, which was risen annually from 2016 to 2025, saw low-paid workers lose jobs if employers reduce their workforce due to higher labour costs.<\/p>\n
The study, funded by the Low Pay Commission, looked at the six-month period after the most recent minimum wage increase.<\/p>\n
It found that no evidence that recent minimum wage increases in Ireland increased the likelihood of employees on minimum wage losing their jobs.<\/p>\n
While minimum wage employees are generally more likely to become unemployed than higher paid workers, the likelihood of this happening did not increase following increases to the minimum wage.<\/p>\n
In the years where there were larger minimum wage increases, there was not a higher likelihood of minimum wage employees becoming unemployed.<\/p>\n
The ESRI warned that the time period examined featured strong economic growth and low unemployment.<\/p>\n
Job loss among employees aged under 20 years old in Ireland, who can be paid less than the full adult minimum wage, were also examined by the ESRI.<\/p>\n
An employee aged 18 is entitled to 80% of the full adult minimum wage rate, while a 19-year-old can earn 90%.<\/p>\n
The study found that overall, young workers that \u201cage into\u201d a higher minimum wage band did not experience an increased likelihood of job loss following their birthday.<\/p>\n
Despite this, the study found that youth minimum wage rates appear to be increasingly relied upon by employers, with 30% of employees aged under 20 paid the sub-minimum wage rate in 2025.<\/p>\n
\u201cIt is possible that employers are increasingly using sub-minimum youth wage rates to keep labour costs low as the minimum wage gets higher,\u201d the ESRI said.<\/p>\n
Author of the report Dr Paul Redmond said: \u201cIt is important to monitor whether increases to the minimum wage result in negative employment effects for low-paid workers.<\/p>\n
\u201cIn this study, we find that recent minimum wage increases, which occurred during a period of strong economic growth and low unemployment, did not increase the likelihood of minimum wage employees losing their jobs.\u201d<\/p>\n
Ultan Courtney, chairperson of the Low Pay Commission, said it welcomed the publication of the research.<\/p>\n
\u201cThe Low Pay Commission values the depth of this research and its strong evidence-based approach.<\/p>\n
\u201cThe Commission strives at all times to make evidence-based recommendations.<\/p>\n
\u201cOur work relies on rigorous, data driven research and this research provides valuable insights into the effects of increases in the minimum wage.<\/p>\n
\u201cThe research will support our discussions as we prepare our recommendation to Government on the 2027 minimum wage.\u201d<\/p>\n
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